Executive Summary
QUALCOMM Incorporated reported record revenues of $11.7 billion for Q1 2025, showcasing remarkable growth driven primarily by strong demand in its chipset business, which reached $10.1 billion. The company achieved a non-GAAP earnings per share (EPS) of $3.41, underscoring its successful performance in both mobile and automotive sectors. Significant year-over-year growth was noted in automotive and IoT revenues, which increased by 61% and 36%, respectively, reflecting successful diversification into these high-potential markets. QUALCOMM's strategic focus on AI and advanced connectivity technologies positions it favorably for future growth as global demand for smart devices rises.
Key Performance Indicators
Key Insights
1. **Revenue Performance**: Q1 2025 revenues of $11.7 billion, up 17.45% YoY.
2. **Net Income**: Reported net income of $3.18 billion, a YoY increase of 14.93%.
3. **Profitability Ratios**: Non-GAAP EBIT margin at 32% and net profit margin at 27.25%.
4. **Operating Income**: $3.56 billion, marking a growth of 21.41% YoY.
5. **Cash Flows**: Free cash flow of $4.31 billion, bolstered by effective working capital management.
6. **Balance Sheet Health**: Cash and short-term investments totalled ...
Financial Highlights
1. Revenue Performance: Q1 2025 revenues of $11.7 billion, up 17.45% YoY.
2. Net Income: Reported net income of $3.18 billion, a YoY increase of 14.93%.
3. Profitability Ratios: Non-GAAP EBIT margin at 32% and net profit margin at 27.25%.
4. Operating Income: $3.56 billion, marking a growth of 21.41% YoY.
5. Cash Flows: Free cash flow of $4.31 billion, bolstered by effective working capital management.
6. Balance Sheet Health: Cash and short-term investments totalled $14.3 billion, with low debt leverage ratios (debt/equity ratio at 0.542), ensuring strong liquidity and financial stability.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
11.67B |
17.45% |
13.91% |
| Gross Profit |
6.51B |
15.74% |
12.65% |
| Operating Income |
3.56B |
21.41% |
37.68% |
| Net Income |
3.18B |
14.93% |
8.90% |
| EPS |
2.86 |
15.32% |
9.16% |
Key Financial Ratios
operatingProfitMargin
30.5%
operatingCashFlowPerShare
$4.13
freeCashFlowPerShare
$3.88
dividendPayoutRatio
29.6%
Management Commentary
1. Revenue Drivers: CEO Cristiano Amon stated, "Our chipset business achieved record revenues of $10.1 billion."
2. AI and Automotive Growth: Amon noted that automotive and IoT revenues grew by 61% and 36% YoY, respectively, showcasing their importance in the growth strategy.
3. Market Position: Akash Palkhiwala emphasized, "Higher volume in Android premium tier... reflecting strong demand for flagship smartphones."
4. Future Projections: Looking ahead, Qualcomm aims for $22 billion in non-handset revenues by 2029, indicating a clear growth trajectory in diversified sectors.
"We delivered record revenues of $11.7 billion and non-GAAP earnings per share of $3.41." - Cristiano Amon
â Cristiano Amon
"Our mobile roadmap is the strongest in our history with exceptional traction for Snapdragon in premium tier handsets." - Cristiano Amon
â Cristiano Amon
Forward Guidance
Management provided a tempered outlook for Q2 2025, estimating revenues between $10.2 billion and $11 billion with non-GAAP EPS in the range of $2.70 to $2.90. QTL revenues are expected to reflect normal seasonality, with an estimated range of $1.25 billion to $1.45 billion. Growth in QCT, particularly in handsets, looks promising with 10% growth expected YoY, strongly supported by new flagship smartphone launches. Management underscored the potential benefits from AI technologies at the edge, which may drive further revenue expansion beyond traditional segments.